How Iron Powers Ag: Understanding the Farm Equipment Market
7/23/2025The farm equipment market doesn’t operate in a vacuum; nor is it merely an “added value” to farmers. In a real sense, it serves as the mechanical heartbeat of modern farming. Tractors, sprayers, combines, planters – these machines don’t merely represent assets on a farm balance sheet, but rather determine the productivity, profitability, and solvency of farm operations.
And yet, few outside the farm equipment industry grasp how interconnected this cycle really is, or just how critical used equipment is to its function.
Whether you’re a farmer, lender, dealer, or auctioneer, understanding the farm equipment market and the ripple effects of used equipment values is critical in today’s dynamic ag economy.
Learn about the basics of the farm equipment market (and peek into some trends for specific categories of equipment) in this market update video with Andy Campbell, Tractor Zoom’s Director of Insights.
The farm equipment cycle: It’s more than buying and selling
Unlike some other industries, the farm equipment market isn’t just about the latest technology or brand-new machines rolling off the lot. It’s a tiered system built on turnover, trade-ins, and cascading ownership. As Andy Campbell, Director of Insights at Tractor Zoom and a fourth-generation Iowa farmer, explains, “You can’t continue to sell new equipment without selling through the old.” And “old” equipment has its own story to tell.
The process typically starts with a first buyer (usually a large-scale farmer or operation) who purchases new equipment directly from a manufacturer or dealer. That new piece is used in operations and eventually traded in and resold to the next buyer down the tier. This continues through multiple hands until the equipment has fully lived out its useful life.
Whether due to economic strain, crop pricing, interest rates, or other market conditions, if any part of that trade-in chain stalls, the whole system can be jammed up. “If any one of those farmers on that chain, for whatever reason, decide not to buy,” says Campbell, “that system starts to break apart.”
Equipment values are a leading indicator
Used farm equipment prices directly affect what a farmer pays, and ultimately whether they decide not to buy additional equipment, depending on the return on investment and financing available to them.
But these prices are also a signal of overall economic health. Much like real estate prices can foreshadow market confidence or economic stress, auction values for farm equipment can indicate farmer sentiment, dealer pressure, and commodity income trends. “One of the big lessons from the last few years is that equipment goes where cash flows,” says Campbell. If farmers aren’t making cash, they’re not going to be able to buy equipment.
Farm equipment values are also closely tied to agricultural commodity markets. When corn or soybean prices fall or input costs rise, farm income typically declines, leading farmers to delay or scale back equipment purchases. This shift in buying behavior can leave dealers holding higher-cost used inventory acquired during stronger market conditions, increasing financial risk and tying up capital on the lot.
A look at the main stakeholders in the farm equipment economy
Every equipment transaction impacts a broad network of people in various roles in the industry. Each group plays a unique role in shaping the flow of equipment and capital.
Farmers (and other agricultural managers)
For farmers, ranchers, and other end users, equipment is both a tool and an investment. Decisions around buying, trading, or holding onto machinery are often dictated by a mix of cash flow, operational needs, and market sentiment. In a volatile market, many tend to hold off on big purchases or opt to buy once-used machines instead of purchasing brand new equipment.
As Campbell shares, “Machinery is one of the most elastic goods on the farm. It’s the first place many farmers cut back if margins are tight, especially if they’ve recently upgraded or can extend the life of the machines they currently have.”
Plainly stated, market conditions and equipment values directly impact the demand side of the equipment industry.
Equipment dealers
Dealerships operate at the crossroads of the new and used equipment cycle – absorbing trade-ins, managing inventory risk, and relying on throughput (inventory turns) to make room for new sales. In the current market, used values are fluctuating and inventory is piling up in categories like combines and sprayers. This forces dealers to increasingly focus on offloading used machines before the market shifts further, as carrying costs on dealership lots can accumulate quickly.
In a survey of dealer managers conducted by Tractor Zoom, over 50% said their number one focus heading into 2026 is boosting used equipment sales. This reflects the other side of the equipment coin: When end users are hesitant to purchase due to price sensitivity, dealers must find ways to meet these potential customers where they are at by adjusting pricing. This also has a downstream impact on equipment values and retail (as well as auction) listing and sold values.
Auctioneers
Beyond simply being a channel to liquidate excess inventory, auctions serve as a pulse check on the wider market.
Equipment auction values tend to adjust quickly to shifts in farmer sentiment and commodity pressure. The visibility that sold values offer into real-time pricing makes auctions one of the most transparent sources of equipment valuation data. Equipment software companies like Tractor Zoom use this auction sold data to create comparables that dealers and lenders can use to determine accurate market value and set appropriate pricing (see more on this below).
Equipment auctions provide crucial data that helps everyone in the industry understand what’s happening in the market. Watch Tractor Zoom’s recap of the 2024 Rice/Agrivision inventory reduction auction to get a peek into what a live auction is all about.
Ag lenders
Ag lenders rely on accurate equipment values to underwrite loans, assess collateral, and monitor farm financial health. Because equipment often makes up a sizable portion of a farm’s balance sheet in many regions around the country – and because the value of equipment can fluctuate rapidly – up-to-date and regional valuation data is critical for managing risk.
Making sense of the equipment market: Let Andy Campbell be your guide
If the ag equipment economy feels complex, that’s because it is. But insiders like Andy Campbell are working to make it more transparent and accessible. Combining data from Tractor Zoom’s platform with real-world conversations from farmers and dealers, Campbell is one of the clearest voices breaking down trends in equipment values and market health.
From analyzing corn production’s influence on machinery demand to highlighting auction trends and dealership sentiment, Campbell helps all stakeholders understand where the market is headed, and what levers they can pull to stay ahead.
Watch and listen to some of these conversations with dealers in the Beyond the Hood Podcast, hosted by Andy Campbell.
Why used equipment matters now more than ever
Used equipment is a key strategic asset for all stakeholders involved. When buying behaviors shift and the volume of new equipment sales slows, used inventory becomes the flywheel that keeps the whole cycle in motion.
Knowing what a piece of equipment is worth and who is willing to pay for it is essential information across the industry. The velocity of trade-ins, the confidence of buyers, the financial modeling of lenders – all of these metrics are measured by analyzing reliable (and ideally real-time) used equipment data.
In seasons and years where farmers choose to extend the life of their machinery instead of replacing it, the pressure mounts for everyone in the value chain to be informed when it comes to resale, inventory management, and timing.
Tractor Zoom: Connecting the ag equipment ecosystem with data and industry insights
Tractor Zoom is a company built to support the entire ag and heavy equipment value chain. Through its various platforms and tools, Tractor Zoom has become an industry leader in delivering market transparency, data-backed insights, and digital tools that help users make smarter equipment decisions.
- TractorZoom.com is the leading online search platform for farm equipment, connecting buyers with real-time auction and dealer listings.
- Tractor Zoom Pro equips dealers, auctioneers, and lenders with data tools for accurate equipment valuation, appraisals, trend analysis, and inventory benchmarking.
- Anvil Pro, the dealer intelligence platform, helps dealers sell equipment faster. It provides equipment dealers with integrated tools to nurture customer relationships, streamline sales operations, manage equipment inventory, and speed up the PO and invoicing process.
Together, these solutions help power a more informed, efficient, and connected ag equipment industry.
Interested in learning more about Tractor Zoom’s suite of solutions? Book a demo with one of our experts to find out which data and operations tools can best meet the needs of your organization.
Solutions like Tractor Zoom Pro’s Search Results allow dealers, lenders, and auctioneers to find reliable comps to value and price equipment with confidence.
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